New Jersey small businesses employ nearly 1.8 million people, according to the U.S. Small Business Administration’s Office of Advocacy. If you are a family business owner, you may want to consider a business succession plan in addition to your estate planning for your family and employees who rely on you.
Talking with an experienced attorney could be particularly helpful if you are looking for a method of passing on your small business to your descendants without a huge tax bill. An adept New Jersey business succession lawyer may be able to advise you on wealth management strategies that could coincide with your estate planning.
What Is Business Succession?
For New Jersey proprietors engaging in estate planning, business succession could be a method for protecting their company’s balance sheet while ensuring that their loved ones can benefit from an inheritance. Business succession might begin with gifting small percentages of the business to family or gradually training them on how the company runs. However, it may be wise to check with an attorney before making any significant moves.
An experienced New Jersey business succession attorney could coordinate the future of a family company with other estate planning maneuvers. Such a plan might be able to maximize benefits to loved ones while minimizing tax liabilities.
What Can Business Owners Do to Equalize Gifts to Their Children?
In many cases, children of small business owners are interested in taking over for their parent after they pass away. However, proprietors may wish to determine the monetary value of their business percentage or ownership so they can give an equivalent inheritance to other children.
While sitting down with a capable business succession lawyer to do estate planning, a New Jersey family business owner might want to ask about wills and trusts. A proprietor may be able to place language in their will to affirm that the business hierarchy and shares will change according the indicated plan upon their death.
Buy-Sell Agreements in New Jersey
A will in New Jersey may provide verbiage that authorizes a co-owner to buy out the shares of the deceased. The cash from the sale could then be distributed to the deceased’s loved ones. Alternatively, that money from the sale of the shares might be placed in a trust that could also be described in a will.
Contact a New Jersey Business Succession Attorney
If you are one of New Jersey’s thousands of business owners, it might be a wise move to plan ahead for both your future and the potential of your company after you pass away. Some proprietors may not realize that estate planning and business succession can go hand in hand, but planning your estate and business succession together can often have significant benefits, including more equitable division of assets and tax savings.
You might be able to get started on your forward-thinking plan for your company today with assistance from knowledgeable legal counsel. Call a New Jersey business succession lawyer to schedule an initial consultation and learn what may be possible in your circumstances.